The federal government has initiated a major review of its spending, targeting ambitious operational cuts led by Prime Minister Mark Carney. Finance Minister Francois-Philippe Champagne has instructed cabinet members to propose savings, aiming for reductions of 7.5% in the 2026-27 fiscal year, 10% the following year, and 15% in 2028-29. Key programs like health transfers and individual benefits will remain unaffected, while the government is focusing on cutting from a $180 to $200 billion segment of its $570 billion expenditures. Achieving these savings is anticipated to be a collective effort by cabinet members.
Prime Minister Mark Carney is embarking on a comprehensive review of government spending, aiming for ambitious savings proposals to reduce operational spending by 7.5%, 10%, and 15% over three years.
Finance Minister Francois-Philippe Champagne highlighted that operational spending targets are challenging but achievable, requiring collective effort from all ministers.
Carney emphasized that cuts will not affect transfers to provinces for health and social programs, nor will individual benefits like pensions and Old Age Security be reduced.
Sahir Khan estimated that the government is targeting $180 to $200 billion for cuts, excluding areas like health, child care, and pharmacare, which are protected.
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